AWS CEO constructive on AI at conference, says BofA

BofA notes that AWS CEO Matt Garman spoke yesterday at an investor conference and was constructive on AI. New technology advancements in AI/ML are increasing the innovation gap between cloud and on-prem servers/data centers; GenAI adds “pressure” to invest, but AWS is focused on “balancing expenditures with revenue growth”; and AWS historical reliance on custom-built infrastructure helps alleviate some of the incremental investment and reliance on third-part suppliers, Garman is quoted as having said. In addition, Oracle (ORCL) and AWS announced a new partnership called OracleDatabase@AWS yesterday, noted the analyst, who notes that the two had been competitive for database customers and contends that the new partnership suggests companies have a lot to gain by working together. BofA, which thinks all cloud providers have a sizable opportunity to unlock demand for infrastructure/applications using data housed within Oracle’s databases, maintains a Buy rating on Amazon (AMZN) shares.